Posts with tag: London

Renting couples in London priced out of starting a home

Published On: November 30, 2016 at 12:49 pm

Tags: Buy-to-Let,London,london house prices,renters,tenants in london

Concerning new research conducted by crowdfunding platform property partner Property Partner has revealed bad news for renters in London looking to start a family.

Data from the investigation shows that those wanting to start a family while renting in London must pay an average of 55.6% of their combined monthly wage to rent a typical three-bed property.

This means that in one year, a couple would have to pay £29,520 in rent, before they even consider childcare and other associated costs.

Monthly expenses

The research looks at average monthly costs for rental prices for one and two bed flats in London. It then looked at how much it would cost to progress to an average three-bed house in each of the capital’s 33 boroughs.

Using the total average net monthly of earnings of a couple in London, amounting to £4,417, the investigation looked at the proportion of salary required to make the step-up.

Worryingly, it indicates that tenants are facing a nigh-on impossible task to rent larger properties in London. In Kensington and Chelsea-the last affordable borough-an average one-bedroom flat would cost more than 59% of their combined income. This rises to 92% for a 2-bed flat and 168% for a three-bed house!

The table below shows that 10 least affordable boroughs in London:

Borough	Average rent for 1 bed flat	Rent as a % of combined salary for 1 bed flat	Average rent for 2 bed flat	Rent as a % of combined salary for 2 bed flat	Average rent for 3 bed house	Rent as a % of combined salary for 3 bed house
Kensington & Chelsea	£2,634	59.63%	£4,059	91.89%	£7,434	168.29%
Westminster	£2,602	58.90%	£3,864	87.47%	£5,978	135.33%
Camden	£1,814	41.06%	£2,738	61.98%	£5,383	121.86%
Tower Hamlets	£1,439	32.58%	£2,399	54.31%	£2,437	55.17%
Hammersmith & Fulham	£1,695	38.37%	£2,389	54.08%	£2,887	65.35%
Islington	£1,738	39.34%	£2,355	53.31%	£3,461	78.35%
Southwark	£1,589	35.97%	£2,194	49.67%	£2,608	59.04%
Hackney	£1,600	36.22%	£2,167	49.06%	£2,811	63.63%
Wandsworth	£1,480	33.50%	£2,152	48.72%	£2,591	58.65%
Lambeth	£1,485	33.62%	£2,099	47.52%	£2,325	52.63%
London average	£1,311	29.68%	£1,839	41.63%	£2,460	55.69

Renting couples in London priced out of starting a home

Shocking

Dan Gandesha, CEO of Property Partner, said: ‘Our research will come as a shock to tenants in the capital. With London house prices now so high, the ranks of Generation Rent are rapidly expanding. And, as demand for larger rental properties has grown, finding affordable accommodation is increasingly difficult.’[1]

Those unable to buy but hoping to start a family and move up the rental ladder may just be able to make ends meet in outer London boroughs. But the harsh reality is that they’ll be forced to bring up their children in a flat rather than a house. Although everyone knows Kensington and Chelsea, and Westminster, are totally out of reach on an average London salary, the surprise comes with Camden and Islington too.[1]

Sobering

Continuing, Mr Gandesha noted: ‘Another sobering thought is that our research assumes both partners are in full time employment and earning the average London salary. The figures do not take into account that if a couple have one or two children, the costs of childcare and household bills would make meeting the monthly rent unachievable.’[1]

‘It’s welcome news that the new Chancellor announced £1.4 billion for affordable homes in last week’s Autumn Statement, and that this is across a ‘wider range of housing’. This sounds like a sage commitment to increase the supply of affordable rental stock which will also help control rental prices.’[1]

Concluding, Gandesha said: ‘Traditional landlords though are suffering from recent tax changes including cuts in mortgage interest relief due to kick in next April. With increasing constraints on making a profit or even balancing the books, buy-to-let investors could be forced to either sell up or increase rents. We must ensure more rental homes are built to balance this out.’[1]

[1] http://www.propertyreporter.co.uk/property/renting-couples-priced-out-of-starting-a-family-in-london.html

Majority of Brits Unhappy with Buckingham Palace’s £369m Renovation Project

Published On: November 28, 2016 at 10:13 am

Author: Em Morley

Categories: Property News

Tags: Buckingham Palace,London,refurbishment,renovation,tax

The majority of Britons are unhappy with Buckingham Palace’s £369m renovation project, following the Treasury’s announcement of the plans last week.

Majority of Brits Unhappy with Buckingham Palace’s £369m Renovation Project

To fund the 10-year scheme, the Queen will be given a 66% pay rise, which will last for the entirety of the renovation project. However, this news has resulted in a backlash from the general public and has left UK taxpayers questioning who should pay for the work.

Consequently, a petition requesting the Queen to pay for the refurbishment herself reached its target in a matter of days, attracting more than 140,000 signatures.

Conducting its own research on the controversial scheme, leading home services marketplace Plentific.com has found that two out of three UK taxpayers are unhappy with the costs.

The firm revealed that 68% of Britons are unhappy with the £369m price tag. As the home of Buckingham Palace, Londoners appear more supportive of the renovation project, with just 61% saying they are unhappy with the costs. Plentific believes that this may be due to those living in the capital being less surprised by the level of funding needed for the work.

Similarly to the sentiment felt around the EU referendum, Scotland has taken a distinctly negative stance and has proven to be the most unsupportive country in the UK, with 81% saying they are unhappy with the costs. 82% of residents in Edinburgh disapprove the costs, whilst Glaswegians are more sympathetic, with 77% feeling unsatisfied.

Bristol has shown the highest level of support throughout the country, with just 54% feeling unhappy with the £369m investment. Brighton, too, shows more understanding of the costs, at 59%.

The least happy locations in England are: Nottingham, 78, Liverpool, 73%, Sheffield, 72%, and Leeds, 70%.

The spokesperson for Plentific, Stephen Jury, comments: “Whilst the price for upgrading seems steep, these refurbishments are essential to the safety of the building and will allow Buckingham Palace to continue to attract tourism and generate revenue.

“For the average UK taxpayer, the cost obviously comes across as a shock, which is highlighted by our research with the majority not being happy with the bill.”

How do you feel about the £369m renovation project?

The Night Tube Launches on the Northern Line

Published On: November 18, 2016 at 12:19 pm

Author: Em Morley

Categories: Property News

Tags: house price growth,house prices,London,night tube,Northern Line

Today’s the day that the Night Tube launches on the Northern Line on Fridays and Saturdays. The service will join the Central, Victoria and Jubilee lines, which rolled out their overnight routes over the past few months.

Ahead of the all-night extension, online estate agent eMoov.co.uk has analysed house prices from north to south on one of the capital’s oldest Tube lines. The research looks at the current property demand by each station, the average house price in each area and the growth in values across the Northern Line in the last year.

Property south of the river dominates demand on the Northern Line – six of the ten most in-demand areas are below the Thames, making southwest London a hotspot for Night Tube homebuyers. Being so well connected makes it a particularly great location for commuters.

Morden, the southernmost stop on the line, is the most in-demand area, at 44%. Zone 3’s Colliers Wood, 43%, and Balham, 41% are close behind.

The Night Tube Launches on the Northern Line

In contrast, the least in-demand areas on the Northern Line are north of the river. Both Charing Cross and Embankment top the list, at just 3%. As prime central London has taken a hit over the last few months, it’s unsurprising that the capital’s most expensive spots have seen demand drop. Hampstead, between Zones 2 and 3 in north London, also ranks as one of the least in-demand areas on the Northern Line, at 8%. Although this isn’t quite on par with prime central London, this affluent residential area has suffered a drop in demand as a result of high prices, at an average of £1,466,516.

As it crosses two lines through the centre of the city, the Northern Line extends into some of London’s most expensive areas.

Tottenham Court Road boasts the highest average house price, at £2,083,431, followed by Hampstead. The third spot goes to Charing Cross, at £1,416,625.

Yet again, the southernmost tip of the Northern Line tops the list for the most affordable property. Morden’s average price is just £398,422. Colindale has the second most affordable house prices, at £405,576, while Zone 5’s Edgware enjoys an average value of £434,211.

The Night Tube will be particularly beneficial to these three areas, as late night crowds will be more inclined to live further out of the centre, knowing that they can still get home cheaply and easily.

The most impressive growth rates on the Northern Line are scattered across all zones. Burnt Oak has recorded the greatest increase in house prices on the line, at 12%, and was trailed by a three-way tie between Edgware, Kennington and Waterloo, at 10%. Morden again shows impressive growth, at 9%.

But despite strong growth around the capital’s outer zones, it was the prime central London stops that recorded the greatest declines. Goodge Street, Warren Street and Tottenham Court Road all saw prices fall by 1%. This is no doubt a result of these areas being home to some of the highest property values.

Clearly, the Night Tube service on the Northern Line will have the most positive effect on homeowners living in the furthest reaches of north and south London, making property on the outskirts of the capital more appealing, particularly to younger would-be homebuyers.

The Piccadilly Line will launch its Night Tube service on Friday 16^th December, and other lines are expected to expand their routes in the New Year.

The Founder and CEO of eMoov, Russell Quirk, comments: “The launch of the Northern Line Night Tube service is no doubt one of the most anticipated, as the line connects both the very north and south peripherals of the city, with the Jubilee and Victoria line services merely brushing the boundary south of the river.

“With the price of property in central London forcing many, especially younger, homeowners and renters out into these peripherals, property close to a 24-hour link that reaches right across the city will be a sought after commodity indeed.”

He continues: “Property demand across the Northern Line reflects this, with the most sought after stations for buyer demand all located in Zone 3 and further afield, with the exception of Clapham North. Although demand should increase the entirety of the Night Tube service, homeowners at each end of the Northern Line should be particularly well placed to see the value of their property increase, in line with this heightened buyer demand.”

Landlords, now might be a great time to buy on the Northern Line…

The Best Christmas Markets in the UK for Property Prices

Published On: November 18, 2016 at 9:39 am

Author: Em Morley

Categories: Property News

Tags: Christmas,Christmas markets,house prices,London

With the capital’s Winter Wonderland opening its doors today, online estate agent eMoov.co.uk has researched which of the best Christmas markets in the UK offers the most affordable property prices.

The agent analysed 29 of the UK’s merriest Christmas markets, finding that the current average house price across each of them was £316,569 – £98,681 more than the current UK average. eMoov then ranked them on the average house price, to guide Christmas-loving homebuyers to the ten most affordable locations during the festive season.

While many people flock to enjoy London’s Winter Wonderland in Hyde Park, not as many will be able to afford a home in the area, which costs an average of £2,052,951.

The Best Christmas Markets in the UK for Property Prices

Scotland’s Country Living Glasgow is the cheapest area for property, at an average of £121,430, while Nottingham’s Winter Wonderland closely trails behind, at £128,192.

Both Glasgow and Nottingham are well ahead of the other locations on the list, making them the most appealing for those looking to celebrate the most wonderful time of the year in an affordable property.

The Victorian Christmas Market in Wrexham is third on the list, at £150,883, closely followed by Manchester’s German Market, at £153,590.

Birmingham’s German Christmas Market is often ranked one of the UK’s best Christmas markets and is the biggest in Europe outside of Germany and Austria. The area, which places fifth on the list, has an average property price of £165,149.

For those in Leeds, the Christkindelmark is a great event for festive cheer and house prices. The northern city is sixth on the list, at £170,927.

The next stop is Staffordshire’s Winter Wonderland, at £177,531, while the Gloucester Quays Victorian Christmas Market is eighth, at £182,903.

Homebuyers in the Welsh capital can enjoy its average house price of £191,582, while visiting the Cardiff Christmas Market. The final gift under the tree is Chester’s Christmas Market, which has a price tag of £191,666 and prides itself on abundant crafts, stocking fillers and warm beverages.

Although there are many more Christmas markets in the UK, the above ten are some of the best and most affordable for those looking to purchase properties.

The Founder and CEO of eMoov, Russell Quirk, comments: “Christmas begins earlier every year, but the launch of winter wonderlands and Christmas markets across the UK signals the festive season is about to kick off.

“Although not everyone will welcome this news, it could certainly be beneficial for nearby home sellers, with Christmas market property commanding a higher price tag than the rest of the nation.”

He adds: “With the seasonal slowdown fast approaching, what better additional selling tool than one of the UK’s best Christmas markets down the road?

“Ironic that perhaps the best known and most popular on our list is also home to the largest barrier for those aspirational homebuyers that might wish to live there. But there are still many realistic options filled with festive cheer for those looking to buy this Christmas.”

Which of the best Christmas markets will you be visiting this year?

What Will the Autumn Statement Mean for the Housing Market?

Published On: November 16, 2016 at 9:40 am

Author: Em Morley

Categories: Property News

Tags: Autumn Statement,buy-to-let landlords,housing market,infrastructure,London

Next week, on Wednesday 23^rd November, the new Chancellor, Philip Hammond, will deliver his first Autumn Statement.

London estate agent Portico has looked at what to expect from the Autumn Statement in terms of the housing market, tax and infrastructure.

Tackling the housing crisis

Hammond has decided to take a different financial approach to his predecessor, George Osborne, by abandoning his pledge to balance the books by the end of this Parliament. This will enable Hammond to borrow more money, and therefore potentially boost the building of new homes, ensuring that, over time, property becomes more affordable and the housing crisis is eased.

What Will the Autumn Statement Mean for the Housing Market?

A Mortgage & Insurance Adviser at Capricorn Financial, Alanzo Seville, believes: “If the Chancellor focuses on the supply of new build houses (based on average affordability calculations, for example), in conjunction with empowering local authorities, housing associations and developers, he could provide first time buyers with the kind of help that is actually needed.”

Robert Nichols, the Managing Director of Portico, also says: “The problem in London is not simply the lack of supply, but the chronic lack of affordable housing. It’s vital that we start investing heavily in the capital’s infrastructure and new high speed communication links, which could allow London workers to live in more affordable areas.”

Will Stamp Duty be cut?

There have been many rumours and calls recently for the additional Stamp Duty charge to be abolished, or for the liability of Stamp Duty to be switched from the buyer to the seller.

The complexity of the 3% surcharge on additional properties is still causing confusion, so Portico is looking for clearer guidelines in the upcoming Autumn Statement for its landlords.

Nichols explains: “It’s time the new Government reviews the additional Stamp Duty taxes aimed at buy-to-let investors and the most expensive properties. Actions need to be taken in order to create some movement in the market and, currently, Stamp Duty Land Tax is slowing transactions down.”

Seville agrees that Stamp Duty is a burden on landlords, but doubts “that the tax will be removed altogether, especially in light of the recently announced Stamp Duty receipts attributed to the new regulations. Some have argued that switching the liability for Stamp Duty will aid first time buyers and provide the residential market with a kick-start in 2017. However, the chances are that such a step change will cause asking prices to increase, which will in turn exacerbate the affordability crisis, rather than solve it”.

Infrastructure spending

Spending on infrastructure is almost certain to feature in next week’s Autumn Statement. Speaking in Washington recently, Hammond stated: “Now is a good time to invest in genuinely productivity-enhancing infrastructure, and to take advantage of low borrowing costs and our ability to borrow.”

But while the Chancellor is expected to deliver a boost to infrastructure spending (as well as housing), he has made it clear that it will not be a “fiscal splurge”.

Nichols comments: “To counter Brexit uncertainties, it’s vital we make sure our infrastructure and communication links across London and the rest of the UK are 21^st century. Though no new major projects or commitments are likely to be announced, Hammond may fast-track already scheduled projects, like Crossrail 2, which could in turn put momentum back into the London property market.”

He adds: “Areas experiencing infrastructure investment typically benefit from a boost in both rental yield and capital growth – even in an unstable or weak market. As we’ve seen first hand in the last couple of years and more recently with the Night Tube, big infrastructure projects have a very positive impact on property prices.”

What do you want to see in Hammond’s Autumn Statement?

London is Driving House Price Growth Yet Again, Shows Latest Data

Published On: November 15, 2016 at 11:10 am

Author: Em Morley

Categories: Property News

Tags: average house price,house prices,London,property sales

London is driving house price growth across the UK yet again, shows the latest official data from the Office for National Statistics (ONS)/Land Registry.

The figures for September – the most recent available – show an annual price increase of 7.7% across the UK as a whole, taking the average property value to £217,888. On a monthly basis, prices have risen by 0.2% since August.

House price growth

In England, prices rose by 8.3% year-on-year, to an average of £234,250. Since August 2016, prices were up by 0.2%.

Wales experienced an annual price increase of 4.4%, taking the average property value to £146,388. Month-on-month, prices rose by 0.2%.

In London, however, house price growth stood at 10.9% on an annual basis, pushing the average value up to £487,649. The capital experienced the greatest rate of monthly growth, at 1.4%, meaning it is now driving the UK yet again.

Annually, the East of England saw the greatest increase in property values, at 12.1%.

The North East experienced the lowest rate of annual growth, at just 1.5%. It also recorded the most significant monthly decline in prices, of 1.9%.

Average house prices by region

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Home sales

Between August and September, home sales dropped by 4.3%, with levels remaining lower than those seen in 2014, 2015, and before the Stamp Duty changes earlier this year.

London is Driving House Price Growth Yet Again, Shows Latest Data

Sales during July 2016, for which the most recent Land Registry figures are available, dropped by 28.1% in England, from 93,040 in July 2015 to 66,870.

The number of completed home sales in Wales fell by 23.4%, from 4,603 to 3,525 this year.

In London, home sales declined by a huge 43.3%, from 12,481 in July 2015 to 7,074.

There were 490 repossession sales in England in July 2016, and 54 in Wales.

The lowest number of repossession sales in England and Wales was in the East of England.

Commenting on the latest House Price Index, the Senior Economist at PwC, Richard Snook, says: “We now have three months of post-Brexit official housing figures, which show price growth remaining robust, but fewer properties changing hands. At the start of the year, we expected slower house price growth, but in fact, it has shown impressive resilience; in the first three quarters of the year, average annual house prices were up by around 8% across the UK compared to the same period last year.

“But high prices are causing some buyers to stay out of the market altogether. The ONS data shows residential transactions in September were just 93,000 – 11.3% lower than the previous year. This implies that underlying demand may be weakening as property becomes less and less affordable.”

The Founder and CEO of eMoov.co.uk, Russell Quirk, also comments: “Interesting to see London back behind the wheel and driving the UK property market once again, with the largest monthly increase. This, along with a number of other industry data sets, shows that the capital suffered from wobbly knees post-referendum, but now seems to have well and truly found its feet again. It will be interesting to see if, a few reports from now, Trump’s victory has any notably direct influence on the UK property market.

“We predict a slight price peak at the top end of the market, particularly in London, but little more than that. Elsewhere across the country, strong annual growth all-round.”

He adds: “Interestingly, the UK seems to be suffering from some form of property paralysis across the east, with both the south and North East seeing a monthly fall in prices, along with Yorkshire and the Humber.”